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A borrower has a gross monthly income of $8,000. Their monthly debts include a $450 car payment, $200 student loan, and $150 credit card minimum. The proposed PITI is $1,800. What is the back-end DTI ratio?

Loan Origination Activities · 27% of the SAFE examhard

35.0% 22.5% 42.5% 32.5%

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Correct answer: 32.5%

Back-end DTI = (Total monthly debts + PITI) / Gross monthly income. ($450 + $200 + $150 + $1,800) / $8,000 = $2,600 / $8,000 = 32.5%. This includes ALL recurring debts plus the proposed housing payment.